I was asked the following question:
"Do you think that what this guy wrote below is true?
'You can get ahead of yourself in this game, and it's dangerous to get cocky. But I've had times where for an hour I could do no wrong. I'm trading and 99 percent of the trades are good, they're all for 30 or 50 contracts, and I'll make 10 grand. Then I'll overextend myself and maybe buy 10 or 15 contracts, fighting the trend just because I know prices have hit a support level. Then prices blow through that support and I can't get out without losing half of what I made earlier. When that happens, you've just got to sit back, take a deep breath, drink a glass of water, and get back in.'"
I think that there is some truth in what was written, but there is also a lot of bad advice there as well. You can get ahead of yourself in trading – and trading is not a game, it is a business in which it is dangerous to get cocky. We've all had our "magic" moments when we could do no wrong.But a truly great trader will learn to take his money off the table and be satisfied with what he made.It is the greedy trader who overextends himself.It is the foolish trader who fights the trend.It is an even greater fool who believes that there is such a thing as "support."The foolish advice here is that whoever wrote what you quote readily admits that prices blew through so-called support, which makes it not support at all!He has already proved he is foolish by overtrading his account at what he determined to be support. Now he tells you to continue overtrading by gritting your teeth and jumping back in. Whoever wrote that "advice" sounds like a real blow-hard. He claims to trade big-time, but I don't know.